Leaders Index 8-13-18

The market put in another overall disappointing performance today. After trying to stage a mild early rally, the major averages couldn’t hold it and spent most of the rest of the session selling off. All the major averages finished at their intraday trading lows, showing that there was little buying interest as prices fell. The COMPQ declined by .25% while the SPX fell .40%. Volume was lower across the board. This is positive as you want to see lower volume accompanying lower prices and there was no distribution. Leading stocks were mostly lower as well with the leaders index falling .35% on the day. The index closed in the lower half of its trading range but off the lows of the session. Volume was higher than yesterday but still below average. The market acted sloppy again today after Friday’s sell off, mostly on news about Turkey. The charts of the major averages, particularly the New York averages have weakened in the last couple of days. The Nasd averages look better. The leaders index has a better look than the major averages. It has been consolidating its recent advance in a pretty constructive manner. All four days of consolidation have been on below average volume, a good volume signature. Overall the trend still looks like it is higher, but it is a labored uptrend at best. I will be away for a few days. The updates will resume next week. Jerry